The last day of operation of the Federal Foreclosure Moratorium was July 31, 2021.

Starting on March 18, 2020, the CARES Act prevented foreclosures on certain federally backed mortgages. This group includes Fannie Mae, Freddie Mac, the Federal Housing Administration, the Veterans Administration, and the United States Department of Agriculture. The government moratorium was extended many times until it finally expired on July 31, 2021.

Foreclosure moratoriums in most states have halted.

With a few notable exceptions, most state-level moratoria on foreclosures that applied to many types of loans have likewise expired.

Consult your local legal resources, talk to a HUD-approved housing counselor, or contact your mortgage service provider to find out if you are still protected from foreclosure.

Is a stop to foreclosures in 2023 possible?

HUD, the VA, and the USDA have not yet shown any indication that they intend to implement another foreclosure freeze in 2023.

Rising Number of Foreclosures

Since the borrower safeguards provided by COVID-19 have ended, the rate of foreclosures has increased. Those removing themselves from COVID-19 forbearance programs are a major contributor.

Avoiding a Mortgage Default

To prevent foreclosure, borrowers have options, including loan modifications and short sales.

If you fill out a loss mitigation application, you could be eligible for options like a payment postponement or repayment plan that can help you keep your home.

The Basics of Refinancing Your Loan

Refinancing is adjusting the terms of a loan so that the monthly payments are lower. When a loan payment is late, interest is often charged to the total due.

Protections against Foreclosure Through the Law

There are varying safeguards against foreclosure, depending on where you live in the United States. The foreclosure procedure cannot begin until certain prerequisites are satisfied.

Obtaining Added Support

Talk to a HUD-approved housing counselor or a foreclosure attorney for individualized guidance through this process. Get in touch with the government agency that guaranteed your loan if you need help finding other relief options.

If you’re worried about losing your home to foreclosure, it’s in your best interest to educate yourself and talk to experts about the choices available to you.